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Application of section 45 to withdrawals by non‑citizen SRS members, etc.

Income Tax Act 1947

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—(1) Subject to subsections (2) and (2A), section 45 applies in relation to —(a)any withdrawal made —(i)under section 10G or after the balance (excluding any life annuity) remaining in the SRS account is deemed withdrawn under section 10G(6) or (7) by an SRS member who is not a citizen of Singapore from his or her SRS account; or(ii)after the sum standing in the SRS account is deemed withdrawn under section 10G(9) by the legal personal representative of a deceased SRS member who is not a citizen of Singapore from the SRS account,as that section applies to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purpose of such application, any reference in that section to interest is a reference to such withdrawal from the SRS account; and(b)any payment of any penalty under section 10G(2) which is imposed on any SRS member and paid by an SRS operator to the Comptroller as that section applies to any interest paid by a person (X) to another person (Y) not known to X to be resident in Singapore and, for the purposes of such application, any reference in that section to interest payable is a reference to the penalty so payable by the SRS operator to the Comptroller.(2) For the purpose of subsection (1)(a), where a withdrawal is made —(a)under section 10G(3) or (8) or after the balance (excluding any life annuity) remaining in the SRS account is deemed withdrawn under section 10G(6) or (7) by an SRS member; or(b)after the sum standing in the SRS account is deemed withdrawn under section 10G(9),section 45 applies only in relation to 50% of the amount withdrawn from the SRS account.(2A) For the purposes of subsection (1)(a), where a withdrawal of all the funds standing in the SRS account of an SRS member is made on the ground in section 10G(3G), section 45 applies only in relation to an amount determined in the following manner:where Ais the amount of funds withdrawn from the SRS account on that ground;Bis the total value of the investment that is deducted from the balance in the SRS account (if any) on that ground; andCis the amount of the SRS member’s income chargeable to tax under section 10(1)(g) as determined under section 10G(3G).(2B) In subsection (2A) —(a)the reference to a deduction of an investment from the balance in an SRS account is to be construed in accordance with section 10G(3F); and(b)the value of such investment is determined in accordance with the regulations made under section 10G(11).(3) For the purposes of this section, the amount to be deducted under section 45 in respect of withdrawals from the SRS account of an SRS member —(a)under subsection (1)(a), is the amount computed based on the rate of 22%; and(b)under subsection (1)(b), is the total penalty deducted by the SRS operator from the amount so withdrawn from the SRS account.(4) Subject to subsection (5), this section does not apply to any withdrawal by an SRS member who is not a citizen of Singapore if the amount of withdrawal from the member’s SRS account in any year does not exceed the amount of contribution to the member’s SRS account in that year.(5) Where a deduction for SRS contributions has been allowed in any year to an SRS member who is not a citizen of Singapore under an assessment made under section 73(1)(b) and within that year the SRS member applies to withdraw an amount up to the amount the SRS member has contributed in that year, the SRS operator must release the amount applied to the SRS member after deducting tax at the rate of 22% on every dollar withdrawn.(6) To avoid doubt, a reference to a withdrawal from an SRS account in this section is a reference to an actual withdrawal of funds, and excludes a deemed withdrawal of funds under section 10G(3E).

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